Stock markets around the world have experienced significant declines in the values of general stocks in recent weeks as the international community prepares for the economic impact of growing concerns over the coronavirus.
The virus, which has caused the Chinese city of Wuhan to be placed in quarantine and has already had confirmed cases in North America, Europe, and the United Kingdom, has shaken investors who are now bracing themselves for further hits as more information about the disease’s spread becomes public.
The Dow Jones dropped 600 points earlier this month, with the S&P and NASDAQ dropping 1.8% and 1.6% respectively. The Hang Seng Index, the central index of Hong Kong’s Stock Exchange, ended the first week of the crisis 6% down from where it had started.
Increased fear over the spread of the coronavirus is likely to continue its economic path of destruction as more information and images are circulated to the world media.
Several countries, including the United States, United Kingdom, and the World Health Organization (WHO), have declared a public health emergency due to the virus. The outbreak has claimed over 800 lives in China, with news emerging every day of new cases being discovered and quarantined all over the world.
Several nations have begun evacuating citizens out of Wuhan and the surrounding areas, including the United Kingdom, USA, and Japan. Australia, New Zealand, and France are also expected to carry out similar precautions over the coming days.
The spread of the coronavirus and the quick closure of travel will no doubt have a severe impact on global economic growth in the coming weeks.
For most experts, the sheer inability to control the spread of the virus and the little action that world leaders can take is the main cause of this economic instability across global stock markets.
It also spells bad news for global trade between China and the rest of the world, with most countries looking into refusing movement of goods between the nations until the virus has been contained.